Question

Calculate, to the nearest cent, the future value FV of an investment of $10,000 at the stated interest rate after the stated amount of time. HINT [See Example 1.]

7% per year, compounded daily (assume 365 days/year), after 9 years

FV = $________

Answer 1

Ans. Future value = Investment * (1 + Interest rate/Number of days in year) ^ Total years * Number of days in year

10,000 * (1+.07/365)^9*365
10,000 * (1+.000192)^3285
10,000 * (1.000192)^3285
10,000 * 1.878849

$18,788.49